Handicraft Exporters In State Bank On Domestic Market.

JAIPUR: Having been battered by the recession, handicraft exporters in the state have brought in a strategic shift to their business models. Instead of putting all eggs in one basket, they are now "de-risking" their operations by diversifying into new regions with the momentum mainly concentrated on the domestic market.

"Although we have been testing newer markets, besides the US and the Europe, we see huge opportunities in India whose high economic growth has raised the level of affluence and aspirations in the country. Besides, the strong fundamentals of the domestic market have the resilience to help the industry absorb any possible external shocks," said Dileep Baid, chairman, Federation of Rajasthan Handicraft Exporters.

During the recession in 2008-09, exports from the state had plunged by 30% as the US economy went into a tailspin. More than 60% of the exports go to the US. The recent events in the US have started to unnerve the industry, and triggered a rethink on the home market.

While the handicraft industry in the state clocked revenues of Rs 2,000 crore from exports last year, the size of the domestic market was Rs 400 crore.

"The domestic segment of the business is growing at 15%. We are confident that in five years, with renewed focus, the industry's bottomline from this vertical will be at par with that of the exports," added Baid.

Mahavir Sharma, promoter of Oscar Exports, said that exporters are now taking the domestic market seriously. Sharma, who exports carpets, said he is reaching out to various cities through the franchise route. There are some who are building retail networks, he added.

The exporters are looking at multiple channels to penetrate the domestic market. Baid said the on-going handicraft fair organized by FORHEX has focused on domestic buyers. The event has attracted retailers, hoteliers, wedding planners and corporates etc from places like Bangalore, Gurgaon, Kerala and Dubai.

Source : timesofindia.indiatimes.com